06/11/2010

Cut spending, create jobs

Boehner to President Obama: 100 Economists Say Cut Spending Now to Create Jobs

WASHINGTON, D.C. – At a meeting with President Obama at the White House on June 10, House Republican Leader Boehner (R-OH) gave the President a statement signed by more than 100 American economists saying immediate action is needed to rein in federal spending to boost the economy and create private sector jobs:

“Today I gave the President a statement signed by more than 100 economists urging both parties to cut spending now to boost private sector job creation. The need is clear. The May jobs report showed only 41,000 new private-sector jobs. The national debt is now more than $13 trillion. Congress’ failure to pass a budget means we’re missing an opportunity to cut spending and provide the fiscal discipline that economists say is needed to create jobs and grow the economy.

“If the president won’t push his own party in Congress to produce a budget and cut spending, then who’s in charge? This is a failure of leadership – the kind of leadership the president promised to provide. Every American family knows that in tough times, a budget is even more important — not less important. It’s time for the President to lead and the Congress to stop the out-of-control spending right now.”

NOTE: The economists’ statement, along with a cover letter signed by Leader Boehner, can be seen online here. Text of cover letter and economists’ statement is pasted below.

June 10, 2010

The Honorable Barack ObamaPresident of the United States 1600 Pennsylvania Avenue, NWWashington, DC 20500

Dear Mr. President,

Enclosed please find a statement signed by more than 100 American economists urging that bipartisan action be taken immediately to rein in federal spending in order to boost our economy and create much-needed private-sector jobs.

Republicans have offered and continue to offer ideas on ways to immediately eliminate hundreds of billions of dollars in unnecessary spending by the federal government. In addition, Republican Whip Eric Cantor (R-VA) and I have written to you on several occasions recently to say we stand ready to work with you in a good faith manner to force immediate votes in the House on spending cut legislation you send to Congress using the rescissions authority you already have as president. But to date, such legislation has been neither passed by the Democratic leadership nor offered by the administration.

Failing to pass such legislation – and failing to pass a budget in the House this year for first time since at least 1974 – means squandering an opportunity to begin to provide the discipline economists say is needed.

Republicans stand ready to work with you to take immediate action to rein in federal spending so we can begin to boost private sector job creation and end the legacy of debt being passed on to our children and grandchildren.

Respectfully,

John Boehner (R-OH)House Republican Leader

June 10, 2010

ECONOMISTS TO PRESIDENT OBAMA: REIN IN SPENDING NOW TO CREATE AMERICAN JOBS

The jobs report released last Friday by the U.S. Department of Labor was a source of disappointment and alarm. Of the 431,000 new jobs in May, 95% were temporary government jobs created by the Census Bureau. Only 41,000 private-sector jobs were generated, and the civilian labor force shrank by 322,000. In addition, 46% of those out of work have been jobless for six months or longer – the first time in history that such a dire statistic has been recorded for the American economy. Efforts to spark private-sector job creation through government ‘stimulus’ spending have been unsuccessful. Small businesses face an array of new challenges imposed on them by the federal government, including the threat of tax hikes and the newly-enacted health law, which will discourage hiring, increase the deficit, and raise health care costs, according to the chief actuary of the U.S. Department of Health & Human Services.

As economists deeply concerned about our nation's future, we urge a change in direction. To support real economic growth and provide the spark needed to support creation of private-sector jobs, immediate action is needed to rein in federal spending, prevent job-killing tax hikes through the expiration of current tax rates, and reverse the harmful effects of the health care law on small businesses, the engine of job creation in our economy.

We are disturbed by reports that rather than taking such action, Congress will not even propose a budget this year – the first time in modern history that the U.S. House of Representatives has failed to even pass a budget. Such a failure will mark a massive missed opportunity to help our economy grow and create private-sector jobs. Failing to restrict spending growth will further balloon the national debt, impede economic growth, and threaten our nation's long-term economic health.

This issue cannot simply be deferred to a presidential commission. As last week's jobs report illustrates, action is needed now to begin to slow government spending and support the creation of new private-sector jobs. For the sake of millions of Americans who remain out of work – and future generations of Americans, who will carry the debt burden we are accumulating today – we respectfully urge that the leaders of both parties take action immediately to eliminate unnecessary federal spending, prevent tax hikes, stop regulatory threats to job creation, and enact reforms to put our nation back on a true path to prosperity.